Teva prices $15 billion; Citi, Wells Fargo tap market; bonds mixed; credit spreads improve

By Cristal Cody

Eureka Springs, Ark., July 18 – Teva Pharmaceutical Industries Ltd., Citigroup Inc. and Wells Fargo & Co. tapped the high-grade primary market on Monday.

Teva priced $15 billion in six series of fixed-rate senior notes through a financing subsidiary, dropping a planned tranche of floating-rate notes.

Citigroup sold $1.5 billion of 12-year subordinated notes following the release of second-quarter earnings that beat market expectations on Friday. Its subordinated notes firmed about 1 basis point in secondary trading.

Wells Fargo priced $3.6 billion of five-year senior notes in fixed- and floating-rate tranches on Monday.

JPMorgan Chase & Co.’s new 2.95% senior notes due 2026 traded 3 bps softer earlier in the day.

The Markit CDX North American Investment Grade index closed 1 bp tighter at a spread of 71 bps.

Teva prices $15 billion

Teva Pharmaceutical Finance Netherlands III BV priced $15 billion in six series of fixed-rate senior notes (Baa2/BBB/) on Monday, according to a market source.

The company sold $1.5 billion of 1.4% two-year notes at Treasuries plus 75 bps.

A $2 billion tranche of 1.7% three-year notes priced at 85 bps over Treasuries.

Teva sold $3 billion of 2.2% five-year notes at Treasuries plus 110 bps.

The company brought $3 billion of 2.8% seven-year notes at 145 bps over Treasuries.

The $3.5 billion offering of 3.15% notes due Oct. 1, 2026 priced with a spread of 160 bps over Treasuries.

Teva’s final tranche of $2 billion of 4.1% notes due Oct. 1, 2046 priced at 185 bps plus Treasuries.

The company dropped a series of floating-rate notes.

BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets Corp. and SMBC Nikko were the bookrunners.

The notes are unconditionally guaranteed by Teva Pharmaceutical Industries.

Teva also planned to price euro- and Swiss franc-denominated notes to help fund its acquisition of the generics business of Allergan plc.

Teva is a pharmaceutical company based in Jerusalem.

Citi sells $1.5 billion

Citigroup sold $1.5 billion of 4.125% 12-year subordinated notes (Baa3/BBB/A-) with a spread of 258 bps over Treasuries on Monday, according to a market source.

Guidance for the notes was Treasuries plus 260 bps, plus or minus 2 bps.

Citigroup Global Markets Inc. was the bookrunner.

The company’s existing 4.6% subordinated notes due 2026 traded about 1 bp tighter on Monday at 225 bps bid, a market source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on March 1 at a spread of Treasuries plus 280 bps.

Citigroup is a financial services company based in New York.

Wells Fargo prices

Wells Fargo sold $600 million of floating-rate notes at par to yield a spread of Libor plus 102.5 bps on Monday, according to an FWP filing with the Securities and Exchange Commission.

The company also priced $3 billion of 2.1% five-year notes at 99.906 to yield 2.12%. The notes were sold with a spread of 100 bps over Treasuries.

Wells Fargo Securities, LLC was the bookrunner.

The retail, commercial and corporate banking services provider is based in San Francisco.

JPMorgan eases

JPMorgan Chase’s 2.95% notes due 2026 softened in early secondary trading to 143 bps offered, according to a market source.

The notes (A3/A-A+) headed out on Friday at 142 bps bid, 139 bps offered.

JPMorgan Chase sold $3 billion of the notes on Thursday at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

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